. >> sue, thank you so much, we're here with jeffrey gundlach. literal le just walked off the stage. it's great to see you. welcome back. >> your big idea was to short single-family housing. >> if you just look at the statistics, wee kind of surprised by how people are cop settic about home builders, you kind of look at the data, and it's gotten soft. >> it's gotten ugly. >> in recent months really soft. one of the culprits for causing that would be the rate rise of last summer. last summer people were saying this isn't enough of a rate rise to matter. kind of hard to hold that point of view now. you look at mortgage applications, housing starts, you look at new home sales in particular. they're no better than they were at the so-called trough of the recession. it would seem that the stocks that are up an awful lot and discounting and returning to what people think are normalcy, i think people will be disappointed. i've chosen to short -- that's short xhb. >> that's right. i'm sure that some can go granular and get into a certain tier, i think if

we will feature jeffrey dunlo gundlach and we will talk about low yields. beginning of the financial crisis and you can see the great moderation in the 10 year yield, down we go, we come up here and then the world is going to and end jim grant is happy and we are just rolling over again. do we go back down to two percent? >> it does look like a rollover. you have seen a real rollover in the spread between the two year and the 10 year. >> can we go over this in the 6:00 our? we will do spreads in the 6:00 our. aree will do spreads that pluses and minus but not ratios, that is the compromise. >> let's save ourselves with the front page. we picked alibaba as our first front-page story and the filing could go public. it is the chinese e-commerce company set to be the amalgamation of amazon as well as google and ebay. it could have the biggest ipo ever in the u.s.. it may raise as much as $20 billion. some say $25 billion. >> they are only ipoing a portion? >> it would be the most viable internet company after value -- after google. alibaba has not said whether

we heard mike talk about brazil, jeffrey gundlach about the housing market. and laffont, talking about liberty global is his best trade idea. right now larry robbins is taking the stage. he will present his idea. we are not going to have this live here, but what you want to go is go to cnbc.com. we will carry the entirety of this speech from larry robbins and his trade ideas. so go to cnbc.com to catch this presentation in its entirety. we're, of course, looking for those stocks, those trade ideas. we'll bring you those as they become available. back over to you. >> thank you, dominic. >>> in the meantime, let's get back to our original debate. you have things that could potentially be capping gains in stocks like eye crane and the other. good economic data finally coming out of the u.s. economy. what is more important to your money? joining us is andre gassi, a global market strategist and cnbc contributor and chief global strat gist dan green which way will those scales tip? >> i think medium term and long term, what's happening in russia is not going to af

we know that jeffrey gundlach will stay there a while longer or go lower, we disagree with that. that's impacting the banks and financials -- >> do you disagree more with it will stay there for a while part, or it would go lower? i bet you disagree with the go lower part. >> i disagree with significantly lower. i don't think we're going to 2%. could we go to 2.5? yes. i think we'll float around here, 15, 20 basis points. for the financials, we need that to go back up. we need that steepening curve so the net margin increases and the other things going on with the banks combined with the improvement in net interest margin, financials will start to perform. >> i think it's also where you look for the banks. large cap banks, i agree with you, even though i own citi, i'm not so sure it will be a barn burner. but the regional banks, local banks, they are seeing loan growth. they are lessening demands of potential borrowers to some extent. it's still purely cash flow. and i do believe you'll see m&a in there. >> i know we have to run. you like high yield. a lot of people i hearsay bubb

and i'll tell you what, i'm warming up to jeffrey gundlach's short xb because of that. >> it's a perfect day to have a small cap equity strategist. we have lori with us, with credit suisse. welcome. >> thanks for having me. >> what do you make of the conversation? >> i think people are saying things we've been talking about. the valuations in this space are absolutely insane. we have fallen 9%, but you barely made a dent in the valuation. price to sell, 1.6 times to start the year. at our lows this month, we're at 1.54 times. i mean, that's barely a move. it feels so much worse than it's been. a lot of stocks have gotten crushed, but in aggregate, there's a ton of space. >> you're arguing there's a lot further to go for the russ snl. >> i could easily see the russell 2000, trading around 1,100, i could see it hitting 1,000 before it's done. >> pete, you can't tell me if that happens the overall stock market -- >> okay, the big question i've got, then. lori, as people start dumping some of the stocks, and that's the pressure on the small caps, where will they put it? in bonds, no percenta

yesterday, i had a conversation with someone you know, jeffrey gundlach.utious on housing. today inlen speaks washington on bond yields. >> we are expecting a more dovish janet yellen. >> i think you put it nicely. maybe she is more dovish. she has been back and forth recently. she has had a very subtle dialogue with investors about where the fed is going. i would look for some real ambiguity this morning. >> thank you so much. tom keene with "surveillance" in 24 minutes. >> the conversation surrounding alibaba. they have filed to go public in the united states. what am i buying if i buy this? >> you are buying access to a shell company that is in the cayman islands. obviously, most of it is market and usage is in china, with an internet population of over one billion people. they have about 500 million active users on various products. it is a combination of what we are used to when we look at amazon, ebay, and even google. it is all of those wrapped up into one. it even has the payments business which are rolled off. it is owned in small part by u.s. pla

so again, he is against jeffrey, as well, jeffrey gundlach, and i think the skter does better.w the homebuilders are the focus for me or anybody else right here. >> all right. well, you heard from the traders. we want to hear from you. what stocks, and this is back to our prior segment here, what stocks do you think are heading for a bubble? tweet us @cnbcfastmoney, using #bubblebath. >>> coming up next, though, big names on deck for earnings, including disney, whole foods and groupon. what do you need to know? >>> then, the traders need to listen up. they can learn something from this guy. a student who won institutional investors portfolio challenge. anyway, more than 40%. we said this guy. where is he? he's coming up next, i'm told. there he is! you, my friend are a master of diversification. who would have thought three cheese lasagna would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with

i would transpose that with what jeffrey gundlach said earlier this week where he is concerned about housing. >> that was your interview with him that was outstanding. housing sales are for cash which tells you that it is investors who are able to pay cash and are buying houses and not the end-user. >> are you sizing up this? are you going to five bedrooms? >> four is plenty. >> i think you're always looking. >> i am always on the market. >> those are the front page stories. >> it is insane on the island of manhattan looking at real estate. our guest house this hour is kate morris, chief investment strategist at j.p. morgan. there is a green line going up for blue chip stocks and a red line going down for the momentum stock. have you ever seen that divergence in the market? >> it feels like a different environment we have had particularly over the last five years. we were looking at some of these surveys are missed additional investors and everyone was saying this is the hardest start of the year they can remember. intoone has gotten lulled a sense of complacency that the market will